Canoel is acting as a consolidator of low-cost producing petroleum assets too small for the majors but offering immediate cash-flow and good upside with small capital expenditures. In its first move, Canoel acquired two producing oil fields in Argentina. The company subsequently acquired two natural gas fields in Italy capable of achieving quick production, which have become the new focus.

Vital Metals has an advanced tungsten project at Watershed in northeastern Australia that offers significant and as yet unrealised current value. The company also holds an early-stage gold exploration project in Burkina Faso that provides substantial upside potential to investors in the longer term. The company intends to proceed aggressively with development of its tungsten project whilst stepping up exploration at its gold property.

Solid Resources has a promising early-stage tantalum-tin-rare metals project in an accessible region of northwestern Spain. The company has completed a 2011 drill programme, drilling two mineralised zones, and expects to complete a NI 43-101-compliant resource estimate in October, and achieve quick production thereafter.

Woulfe Mining continues to fast-track development at its Sangdong tungsten-molybdenum project in South Korea. Since our initiation note of April 2011, the company has continued an aggressive drilling programme at Sangdong, leading to the calculation of an NI 43-101- compliant mineral resource, and preparation of a revised mine plan for the deposit that is expected to lead to production on, or ahead of schedule. Further, recent developments have prompted Woulfe to commission a formal valuation of Sangdong with the intent of obtaining a more favourable agreement for development of the deposit. The combined effect of these and other key developments is a significant increase in our valuation of Sangdong and Woulfe.

Bacanora is pressing ahead aggressively with its El Cajon (Magdalena) borate project in Sonora Mexico. Since our initiation note of March 2011, the company has successfully completed a C$7.05m private placement and has updated its NI 43-101 report on the project. An aggressive new drilling programme is planned for later this year and the company appears ahead of schedule to place El Cajon into production. Our valuations of El Cajon and Bacanora have appreciated significantly as a result of these and other developments.